You are correct, there is a time limit where the vehicle must be registered.
However, as it will be sitting in a garage until the new owner is ready to ride it, there is no HTA offence.
That doesn't seem to be the case.
http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml
Note: Failure to transfer the vehicle within six days is an offence under the Highway Traffic Act.
It doesn't state anything about exemptions if the vehicle is "just sitting in a garage" or anything...it says that within 6 days of the actual sale you must transfer it.
So, unless the seller is willing to give you a bill of sale that is going to be within 6 days of whatever date potentially months down the road you plan to actually complete the transfer, you are technically on the wrong side of the law.
And IMHO it's just wrong to leave something in someone else's name. If the previous owner decides to go and get a lien on said vehicle after the fact (which he could entirely do since it's still legally registered in his name) you'd regret that decision, wouldn't you?
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